Emigrating from the UK to Other Nations: Top Destinations for High Net Worth Individuals
The UK, once a beacon for business-friendly policies, is facing a significant shift as an increasing number of millionaires choose to relocate due to changes in tax laws and concerns about the country's competitiveness.
According to recent data, over 10,800 millionaires left the UK in 2024, a direct result of new laws introduced by the Labour government. These changes include increased national insurance charges for businesses, limited tax reliefs, and increased rates on capital gains tax.
High-net-worth individuals (HWNIs) are not only seeking lower tax burdens but also better opportunities for investment and a higher quality of life. The United Arab Emirates (UAE), with its low taxes, immaculate infrastructure, and catering to a high-end party lifestyle, has become an attractive destination.
However, other countries are also vying for the attention of these wealthy individuals. Switzerland, for instance, offers a lump-sum taxation scheme for HWNIs, reducing tax bills based on lifestyle spending rather than income. The country's simple residency process, either through starting a business or applying for the lump-sum taxation scheme, is another draw.
European countries like Portugal, Ireland, Spain, Malta, and Cyprus are also popular choices. Portugal offers tax benefits through its Golden Visa and Non-Habitual Residence (NHR) tax regime. Ireland, known for its low corporate tax rate of 12.5%, has a non-dom taxation scheme and is a favoured destination for many UK expats.
Spain, with its more relaxed lifestyle and cheaper cost of living, offers a popular golden visa program for expats. Malta, on the other hand, provides residency by investment schemes and access to Maltese citizenship after four years of residency.
In the post-Brexit world, some countries like Ireland, Gibraltar, and Belize offer visa-free living for British citizens, while others require visas. It's essential to research and understand the visa requirements of the chosen destination.
Moving abroad comes with advantages, such as lower costs of living, escaping high taxes, better weather, and more business and investment opportunities. However, there are also disadvantages, including cultural adjustment and visa challenges. It's crucial to notify relevant government offices, banks, insurance companies, and benefits offices to ensure you pay the correct tax amount and avoid any issues.
If you're a business owner, countries like the UAE, Ireland, and Malta provide the best terms for foreign entrepreneurs. Businesses can eliminate corporate tax responsibility in the UAE by setting up a business in one of its free zones, although the rules are complex and not all businesses are eligible.
With so many options available, it can be challenging to decide which country is the most suitable for your needs. Our experts can help guide you through this process, ensuring a smooth and tax-efficient transition to your new home.
